Balaji Srinivasan Says FTX Is a Preview of State Failure, USD Bank Accounts Could Be Frozen or Inflated to Worthlessness – Economics Bitcoin News

Angel investor Balaji Srinivasan says the collapse of crypto exchange FTX should be treated as “a preview of state failure.” He warned that one day U.S. dollar bank accounts “may be frozen or inflated to worthlessness,” emphasizing that the authorities “will show no interest in prosecuting.” Srinivasan cautioned: “That world is coming and we need alternatives.”

Balaji Srinivasan on FTX, State Failure, and U.S. Dollars Becoming Worthless

Angel investor Balaji Srinivasan commented on the collapse of crypto exchange FTX in a series of tweets Saturday. Formerly the CTO of crypto exchange Coinbase and a general partner at venture capital firm Andreessen Horowitz (a16z), Srinivasan is also the author of The Network State, a WSJ bestseller.

How To Get Free Crypto  

“Treat FTX as a preview of state failure,” he wrote, adding:

One day, your USD bank account balance may be frozen or inflated to worthlessness. The authorities will show no interest in prosecuting — they’re the ones who ordered it in the first place. That world is coming and we need alternatives.

“It’s all just a dress rehearsal for the ultimate rug pull — when the state prints trillions, monetizes the debt, and ends the fiat century,” the angel investor explained in another tweet. “Our space will be prepared. We know what that looks like. And our trust-minimizing systems will be life rafts for the world.”

Many people on Twitter agreed with Srinivasan, stating that bitcoin and decentralization are the answer.

However, some disagreed, telling the entrepreneur that FTX is a fraud and a Ponzi scheme. “It’s not a preview of state failure. It has nothing to do with that. It’s simply fraud,” one wrote. “How can you equate a 32-year-old con man who had no controls, structure, systems, or board to the U.S. government?” another questioned. A third opined: “Comparing regulated banking industry to unregulated crypto exchange is misleading.”

Srinivasan also commented on bitcoin as a hedge against inflation in another tweet on Saturday. The angel investor detailed:

It’s a hedge against hyperinflation, monetary debasement, bank freezes, and wealth seizure. It’s already proven itself in that role, in places like Venezuela, Lebanon, Nigeria. For ‘standard’ inflation it may eventually have a gold-like role, but that takes decades to show.

Tags in this story

Do you agree with Balaji Srinivasan about FTX and bitcoin? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Coinbase Banner  

Read disclaimer

Go to Source
Author: Kevin Helms

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.